Is it worth using a mortgage broker?

There are several ways to access financial products and it can benefit you to open an account direct with the lender. Comparison sites have made it easier for people to access information about different savings accounts, mortgages and loan s, and also to see the interest charged. So it still worth using a mortgage broker?.

While we are happy to discuss savings accounts with our bank, or arranging car and home insurance, but most of us want more advice and assurances when it comes to a mortgage, which is probably the biggest loan you will ever apply for. Ten reasons to choose a mortgage broker are:

1. Professional advice


Mortgage brokers have to have professional qualifications to carry out their job and they must be fully regulated with the Financial Services Authority (FSA). Mortgage brokers will take the hassle away from you by searching for the best product for you. You need to use a broker if you want full advice from an expert about the products on the market, as lenders are not experienced enough to giv e you this information.

2. Making a complaint

If anything goes wrong and you need to make a complaint about your mortgage you will receive invaluable advice from your mortgage broker. If for example you receive full advice from a broker you will also have access to the Financial Ombudsman Service, which can look into the complaint and even arrange compensation if appropriate. If you go directly to a high street bank for a mortgage, and cut out the broker, you won´t have the same comeback if you later have a complaint.

3. Access to more deals


A mortgage broker will search many more deals and loans than your average high street lender can offer, and this will include some deals that are only open to brokers, and which cannot be accessed directly. A mortgage lender will only offer their own products, so all things considered, you would have to be lucky to get the best deal from the availability they have.

4. Is it possible to go direct?


Some mortgage lenders will only sell their products direct to consumers, and often these lenders have very competitive deals on offer. A reputable mortgage broker should tell you if the best option is for you to go to a direct-only provider, and they will also be able to advise you if any deal is really as good as it sounds, or whether there are hidden clauses which could affect your repayments.

5. Unusual circumstances


If you have unusual circumstances or your needs are different to those of most borrowers, a broker can help you navigate the mortgage minefield and advise you of lenders who will not operate in specialist markets, such as the buy-to-let market. A broker will help you find a deal you may not normally be able to access on the high street.

6. Flexible working hours

It is clear to most mortgage brokers that most people work midweek, and it is not always easy for them to make an appointment to discuss a mortgage between 9am and 5pm.  A regulated mortgage broker would normally work into the evening and weekends, and will come to see you at a time to suit you. The deal could even be arranged  over the phone, if you are comfortable for it to be done that way, and brokers should always put your needs first.

7.  A  quicker conclusion

Your mortgage deal will nearly always be concluded quicker if you use a broker, rather than dealing directly with a lender. Brokers have experience of working with lenders and have a vast knowledge of the best way to approach lenders to make sure your application goes through more quickly. Brokers will also speak directly to the people who make the decision whether to approve the application or not, and they can answer any queries you may have.

8.  Better advice about additional products


A mortgage adviser will also specialise in other areas of personal finance, and can give you advice about a wide range of products such as home insurance. Brokers also have to be qualified to advise on home insurance, so you can get all the information you are looking for from one person.

9. Customer loyalty from a mortgage broker


A mortgage broker will generally stay loyal to you, as they know the best way to keep hold of your business in the future is to offer you excellent service from the outset. A happy customer could, after all, stay with the same broker for years to come, so the broker will always have your best interests at heart. For obvious reasons, a lender on the high street will not inform you of a better deal elsewhere.

10. Personal service

By using a mortgage broker you won´t be palmed off with any member of staff, but will have one point of contact, and one person will deal directly with you throughout the mortgage process.  This normally gives a borrower confidence in the broker, and by building up a relationship with the client, they will find out what product will best suit their needs.